CFR pharma expands global ambitions with Adcock bid

Generics and biosimilars Initiative

Building trust in cost-effective treatments

Inscribirse
eng / esp

CFR pharma expands global ambitions with Adcock bid

INICIO/Noticias Farmacéuticas | Posted 02/08/2013 0 Post your comment

Chile-based CFR Pharmaceuticals (CFR) has plans to become a global drugmaker. In its latest efforts it has made a US$1.3 billion cash-and-share offer for South Africa’s second-largest generics drugmaker Adcock Ingram (Adcock).

The announcement by CFR on 3 July 2013 outlines the company’s aim to use this acquisition to strengthen its position as one of the emerging markets’ leaders in pharmaceuticals.

Under the terms of the non-binding offer CFR will acquire 100% of Adcock Ingram’s ordinary shares for a price of ZAR 73.51 per share, as well as making comparable offers to Adcock’s Black Economic Empowerment Partners, as holders of Adcock’s A and B shares, and the participants in the company’s employee and incentive schemes.

The combined company should be able to reduce costs by using excess manufacturing capacity and by transferring the manufacture of certain products to South Africa and India. Increased volumes and utilization rates are also expected to lead to reduced production costs.

CFR should give Adcock access to attractive new markets through its presence in Latin America as well as South East Asia. Adcock Ingram’s regional presence will give CFR access to the South African market and other markets in sub-Saharan Africa.

CFR intends for the two companies to capitalize on attractive emerging market opportunities by becoming a leader in emerging markets, including Africa, India, Latin America, and South East Asia. The combined company would have a presence in more than 23 countries with access to over two billion potential patients, employing more than 10,000 people and have revenues of approximately US$1.3 billion.

Related article

Quality of generics in South Africa

Permission granted to reproduce for personal and non-commercial use only. All other reproduction, copy or reprinting of all or part of any ‘Content’ found on this website is strictly prohibited without the prior consent of the publisher. Contact the publisher to obtain permission before redistributing.

Source: Adcock, CFR